Chinese consumers are purchasing new phones less frequently: Survey

The number of Chinese consumers who plan to purchase a new smartphones every year has declined notably to 2017, signifying that handset sales may further slow down in the world's most populated economy.
Written by Cyrus Lee, Contributor

Chinese people are becoming less inclined to buy new smartphones, a recent report suggests.

According to a recent report by Penguin Intelligence, a Tencent backed research organisation in China, only 16 percent of iPhone users in 2017 said they are planning to change to a new handset each year, down from 27.8 percent last year.

The report, based on a survey of over 70,000 smartphone users in China, indicated that about half of users intend to change to a new phone every two years.

People using Android-powered phones are more inclined to change to a new handset every year, with 23.5 percent saying that they are planning to do so, although the number declined from 34.7 percent in 2016, the report said.

Xiaomi users purchase new phones most frequently, with 32.3 percent of them changing to a new handset once a year, followed by Oppo's 28.2 percent and Vivo's 25.9 percent. Apple users were at the bottom of the brand chart, at 16 percent, said the survey.

The report also said that Huawei users show the highest brand loyalty, with 72.8 percent saying they will purchase another Huawei phone. This was followed by Apple's 65.7 percent and Xiaomi's 54.9 percent, while only 24.9 percent of Samsung users said they will stick to the brand.

Among those who used to be an iPhone user but are now using an Android phone in 2017, 41.6 percent of them are using Huawei phones, while 16.8 percent are using Oppo and 16.1 percent are using Vivo.

Despite the high-end pricetags of iPhones, the expensive handsets have already successfully penetrated less developed areas in China. In 2010, 96 percent of iPhone users were living in Chinese first and second-tier cities. But today, only 61 percent of them are from the most developed parts in China, while 39 percent are living in third and fourth-tier cities, as well as other counties or rural areas.

Although 77.5 percent of iPhone users indicated that Apple's iOS system is more advanced than other Android-phones, only 22.8 percent of them said iPhone cameras are superior and 14.2 percent said iPhones have a more innovative design than Android phones, said the report.

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